Last month of May, in the last half of the day Tuttofood 2026, Nahuel Pianarosa, Commercial Director of Grupo Vierci, was one of the protagonists of the Cibus Link Arena, where the focus on the evolution of organized retail in Paraguay and the perspectives of minority trade in Latin America has attracted a notable interest among assistants. Numerous exhibitors and companies from the food industry recognized the opportunity to exchange opinions with him and get to know better a market which, although previously little explored by many European companies, achieved greater strategic importance.
Weeks after, during the month of July, Food Link I wanted to chat with Pianarosa to delve deeper into some of the themes that arose during that meeting: the economic growth of Paraguay, the evolution of modern retail, the possible development of the hard discount format, the paper of its own brand and the opportunities that the country can offer to companies Europeans through the new commercial understanding between the European Union and Mercosur. The result is an interview that offers a concrete vision into the transformation of one of the most powerful markets in Latin America.
P. Paraguay is often mentioned as one of the most solid economies in Latin America. Is this growth reflected in the consumer?
R. From the macroeconomic point of view, Paraguay is experiencing a very positive moment. The PIB maintains sustained growth, including at the top of forecasts, inflation remains under control for more than two years, the US/PIB relationship continues to decline and the Central Bank operates with full independence. Political stability is also a key factor: governments can change, but the economic strategy remains intact. Furthermore, the direct foreign inversion grows every year at the rate of two digits, impelling new industries, employees and infrastructure.
However, this growth has not yet been fully distributed among the population. Now look for 70% of Paraguayans for income less than 400 dollars monthly. This continues as the main business of the country.
P. Is the Government working to reverse this situation?
R. I think so. Last year's inflation was around 3%, while the minimum wage increased by 5%. I consider this to be an important measure to recover the purchasing power of the most vulnerable sectors. When purchasing capacity increases, consumption increases and the whole chain benefits: industry, retail and consumers. As a retailer, our compromise will translate this benefit to the market through promotions, better offers and greater competitiveness.
The task of transforming the traditional trade
P. What weight does traditional retail currently have in front of modern retail?
R. Very much. Approximately 70% of the food market is concentrated in neighborhood shops and traditional trade. Only 30% corresponds to modern retail. In Latin America, only Bolivia has less participation in the modern channel.
For us, without embargo, this does not represent a problem, but a huge opportunity. However, there is a wide scope to boost the formalization of trade and gain market participation.
P. Colombia logró transformar su mercado thanks to the growth of the hard discounters. Is this a model that they observe with interest?
R. Without doubt. The development of D1, Ara and subsequently Ísimo profoundly changed Colombian retail. Similar things happened in Mexico with 3B, Neto and Oxxo, and we currently see a comparable evolution in Peru.
They are very interesting cases because they demonstrate that the hard discount does not only occur with other supermarkets, but mainly with traditional retail, contributing to formalizing the economy.
The expansion strategy of Grupo Vierci
P. How does Grupo Vierci prepare for this evolution?
R. We have an ambitious expansion plan. During the next four years we hope to practically duplicate our presence in the country.
In addition to our traditional supermarkets of between 2,000 and 3,500 square metres, we will roll out a new format of approximately 1,000 square metres. It won't be a convenience store, but rather a traditional supermarket. It will be a concept that will allow us to enter numerous cities where today we do not have a presence, maintaining a broad overview and all the essential departments.
P. What participation currently has its own brand in Paraguay?
R. The national level practically does not exist. Overall, organized retail represents just 0.8% of sales.
In the Vierci Group we are shortened by more than 5%, but the most interesting thing appears when we analyze specific categories. Where we have correctly developed our own brand strategy, there are product families who can obtain participations of 40% and even 90% of the sales.
This shows that, when the proposal really responds to the needs of the consumer, your brand can quickly convert to the leader of its category.
P. What is the best way to speed up the development of your brand?
R. Mainly a more developed industrial fabric. In countries such as Brazil, Argentina, Colombia or Mexico there are practically specialized manufacturers in an exclusive way to produce for the retailers' own brands.
Paraguay is still in an initial stage of industrialization and many categories depend on imports. Therefore we consider fundamental to traer new inversions manufacturersas and strengthen the national industry.
P. Can the Ley Maquila speed up this process?
R. Without a doubt. But it's not the only factor. Paraguay offers a very competitive tax structure, a reduced VAT, low energy costs, competitive labor force, low cost water and a favorable environment for production reversal.
Our vision is that Paraguay can convert into an industrial platform for all Mercosur and not only into a consumer market.
During the last few years many companies, especially Brazilian ones, have decided to establish operations in the country precisely for these twenty years.
The value of the European product
P. How should Paraguayan consumers understand European products?
R. Muy positively. In Latin America the European product usually associates with quality, confidence and prestige. Pasta, olive oil, preserves, biscuits and many other foods maintain a very solid image.
The problem is not the origin of the product, up to the final price.
A consumer who has more than 400 dollars monthly makes his decisions mainly based on his assumption. The main obstacle for European products is the cost structure, especially transport and oranges.
P. Can the new commercial understanding between the European Union and Mercosur change this scenario?
R. I believe that yes, although it will be a gradual process. The reduction of commercial bars will not have immediate effects. It will take several years for these benefits to be passed on to the whole cycle and finally reach the consumer.
For European companies it represents a very important opportunity, which always includes the particularities of each Latin American market.
P. If you can summarize in one sentence the great desafío of Paraguay for the next few years, what would it mean?
R. Continue to grow by transforming traditional retail into modern retail and, at the same time, build a more competitive industrial system.
There are two processes that must proceed in a parallel manner. If we achieve this, Paraguay can become one of the most attractive markets in Latin America both for retailers and the international industry.
